Meaning PORTFOLIO INSURANCE: A strategy using a leveraged portfolio in the underlying stock to create a synthetic put option. The strategy's goal is to ensure that the value of the portfolio does not fall below a certain level
More terms such as Portfolio insurance in Dictionary P.
- Definition Put:
- Examples An option granting the right to sell the underlying futures contract. Opposite of a call portfolio insurance definition.
- Definition Price Spread:
- Examples An options strategy that involves buying and selling two options on the same security with the same expiration month, but with different exercise prices portfolio insurance explain.
- Definition Parity Value:
- Examples Related: Conversion value portfolio insurance what is.
- Definition Point:
- Examples The smallest unit of price change quoted, or one one-hundredth of a percent. Related: Minimum price fluctuation and tick portfolio insurance meaning.
- Definition Pass-Through Coupon Rate:
- Examples The interest rate paid on a securitized pool of assets, which is less than the rate paid on the underlying loans by an amount equal to the servicing and guaranteeing fees portfolio insurance abbreviation.
